Khushal Singh had occupied the town of Jalandhar by defeating its ruler Shaikh Nizam-ud-Din. He made Jalandhar his headquarters and started living there. Khushal Singh added more precinct to the territory which he had inherited from his predecessor. His associates also captured many places. He was very active against the Muslim rulers and it was one of his troopers who killed the Afghan governor of Sirhind, Zain Khan, in January 1764. He seized Ludhiana and Banur with the help of Amar Singh, the ruler of Patiala, who afterwards received half of the district of Banur. During the troubles which followed the death of Amar Singh, Khushal Singh seized the whole district. He, however, could not make much resistance to the force brought against him and Diivan Wannu Mal was able to recover the Patiala share of the territory.

Khushal Singh constructed a katra at Amritsar, 47 which was named after his Misal. He, realised tribute from Rai Ibrahim and many other zamindars.48 He fought in the battles against Ahmad Shah Abdali in collaboration with other Sardars.